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December 1, 2015

The Risk and Cost of NOT Buying

by mrshmooze

One of the toughest hurdles we often face as salespeople is when a buyer is afraid to make a decision. Such buyers are often extremely uncomfortable with change, or with making a mistake, and they assign disproportionate risk to the buying decision without calculating the risk of maintaining the status quo.
 

Now, sometimes being cautious is the right move. For example, if someone is buying a house in a fluid market and is not convinced the price is quite right based upon a logical analysis, it may very well be the right decision to wait until additional data becomes available. On the other hand, if the buyer is simply emotionally hung up, then as salespeople, we may need to gently point out the cost of not making a decision. In this example, that might include the cost of rising interest rates or the cost of rising home values if they were to continue to appreciate.
 

Real numbers are much more powerful than simply making the case verbally. Let’s say someone is considering buying a $600K home and that, for the past three years, homes in that market have appreciated 5% per year. That means that the cost of waiting could be costing the buyer $2,500/month. We all know time is money, but it can be much more compelling when we see the cost graphically and numerically.
 

Calculating and explaining the risk of not buying requires some sensitivity and timing. It needs to be presented calmly and in an analytical context, otherwise it can come across as pressure . . . and indecisive buyers hate pressure more than anything. So it comes down to a bit of a combination of science and art . . . in other words, intelligent selling.

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